Receipts

Generally you will only have receipts from cash sales. However, there may be occasions when you receive additional income via other sources, for example if you sell one of your business assets such as a lawnmower. For the purposes of your cash flow you will have:

  • cash receipts (sales)
  • other receipts (where you can include anything other than income from sales). Payments

It's important to create separate columns for all of the common types of expenditure that your business will encounter. Obviously, if you're planning to run a gardening round where you cycle to and from each client you won't need a column for motor vehicle expenses etc. The example below details the following monthly expenditures:

  • drawings (what you pay yourself)
  • wages and salaries (what you pay everyone else)
  • insurance
  • postage/printing/stationery
  • motor vehicle
  • telephone
  • dumping fees

♦ fuel

  • other
  • stock/materials.

Month Receipts

Cash sales Other income Total receipts (a) Payments Drawings nsurance

Postage/printing/ stationery

Fuel Telephone Dump fees Vehicle Total payments |b)

Net cashflow (a-b)

Opening bank balance

Closing bank balance

April May June July August Sept

Budget

Actual

Budget

Actual

Budget

Actual

Budget

Actual

Budget

Actual

Budget

Actual

700

900

900

1000

500

1000

700

900

900

1000

500

1000

500

500

700

700

500

700

63

63

63

63

63

63

5

10

5

10

5

10

40

50

60

60

60

60

65

65

26

26

55

55

26

26

35

699

649

883

953

654

894

1

251

17

47

-154

106

0

1

252

269

316

162

1

252

269

316

162

268

Fig. 1. RL Gardening Services cash flow forecast.

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